Independent oil and gas company Cairn Energy is planning to start a further exploration and appraisal campaign offshore Senegal in the fourth quarter of 2016 or in the first quarter of 2017.
Cairn, as the operator, has a 40% WI in the three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore, Rufisque Offshore) and is working with partners: ConocoPhillips (35% WI); FAR Ltd (15% WI) and Petrosen, the Senegal National Oil Company (10%). The three blocks cover 4,490km2.
Simon Thomson, Chief Executive, Cairn Energy, said: “Successful appraisal of the world-class SNE discovery in Senegal has significantly increased 2C oil resources to 473 million barrels with associated 2C oil in place in excess of 2.7 billion barrels.
“Drilling is scheduled to re-commence in Senegal shortly, benefiting from lower costs across the sector. The program contains options for multiple wells and in addition to ongoing appraisal of the SNE field, the Joint Venture continues to assess optimal locations for further exploration drilling on the acreage.”
Following two basin opening discoveries, SNE-1 and FAN-1, in Senegal in 2014 and approval of an extensive evaluation plan by the Government of Senegal in 2015, Cairn and its JV partners completed four appraisal and exploration wells in the SNE field in H1 2016. The company noted that drilling operations were completed ahead of schedule and under budget with four wells completed at the forecast cost of three.
Based on the five well penetrations so far, the current best estimate, independently assessed by ERCE, for oil in place on the SNE field is more than 2.7 billion bbls gross with estimated gross recoverable contingent oil resource of 1C 274 mmbbls, 2C 473 mmbbls, 3C 906 mmbbls.
Cairn said that, as the JV plans future activity, it can see clear potential to access additional cost savings from the current lower cost operating environment.
The company added that a rig tender and services process is well advanced as the JV prepares for stage three of the campaign and is benefiting from the lower cost environment and significant availability of high quality rigs. The JV is working to determine how best to phase the development of the large resource base.
Offshore Energy Today Staff